Apr 6, 2026
Retired NYPD officer Michael Tarulli had his car insurance set to autopay. Then his bank account went negative, and he had no idea why.
It turned out his insurer, Liberty Mutual, had added a stranger to his policy (1): a teenage girl who lived on another floor of his former residence, which was a multi-family home.
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Without his consent, she was listed as a driver on his plan, causing his monthly premium to more than double—from $426.50 to $1,039.83.
Since Tarulli had his insurance payments automated, the inflated charges were processed five times before he caught them.
“They took my money without my knowledge,” Tarulli told ABC7 New York. “They made it very clear they were not going to refund me.”
It took help from a local news team to get his $2,667 refunded. And while his story has a happy ending, it raises an uncomfortable question for others who use autopay: How long could something like this go unnoticed on your bill?
The trouble with autorenewals
Laws relating to subscription or auto-renewal notifications vary by state.
In New York, where Tarulli lives, businesses are required to provide a notice (2) that includes the amount charged, the frequency of charges, and the deadline to cancel charges.
Liberty Mutual claimed they mailed Tarulli a letter asking whether he wanted to add the driver. When he didn’t respond, they added her anyway.
Legal and consumer advocates generally argue (3) that financial changes to an account, especially ones that more than double a monthly bill, should require explicit written consent — not just a failure to object. But not all states require explicit consent to change billing amounts.
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Setting up automatic payments can make the problem worse. When payments are processed automatically, people generally don’t take the time to review what they’re actually being charged. A higher-than-usual bill can slip through unnoticed for months, as Tarulli discovered.
When you stop actively reviewing your bills, you lose visibility into what’s actually being charged. Rate changes, billing errors, and, in Tarulli’s case, unauthorized account changes, can take months to notice.
And it might be a bigger issue than you think. A 2025 survey found 41% of consumers use autopay (4), with higher earners more likely to use it. However, it can lead to losses.
While there are no stats specifically on autopay losses, U.S. consumers overpay for subscriptions by an estimated $1,000 per year. (5)
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How to fight back against unauthorized charges
The key to avoiding surprising overcharges is to review your statements regularly. Spending just 10 minutes a month scanning your bank or credit card statements can help you spot issues.
If you do notice changes you didn’t authorise, here’s what to do:
- Call the biller directly: If you spot a discrepancy, contact your provider as soon as possible. Ask for a full breakdown of your current policy and request documentation of any changes made to your account. The sooner you act, the stronger your case for a refund.
- File a complaint if you’re not getting answers. If the biller refuses to cooperate, you have options. If it’s an insurance provider, file a complaint with your state’s department of insurance, which regulates how insurers handle policy changes and customer disputes. In New York, that’s the Department of Financial Services (6).
- Know what you agreed to: Keep copies of your original contracts and any correspondence. If a change was made without your explicit approval, that paper trail is your best leverage.
- Contact your state attorney general or a consumer protection agency: If you still can’t get a refund, escalating to a consumer protection body — or even a local news outlet, as Tarulli did — may help you get a resolution faster.
The fix for being overbilled by autopay isn’t to abandon it altogether. It’s to treat automated payments as a convenience, not a replacement for actually checking your statements.
Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
ABC7 New York (1); Pearl Cohen (2); MS Law Group (3); PYMNTS (4); CNET (5); New York Department of Financial Services (6)
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Danielle is a personal finance writer based in Ohio. Her work has appeared in numerous publications including Motley Fool and Business Insider. She believes financial literacy key to helping people build a life they love.
